Hims(HIMS) The Motley Fool·2025-02-20 19:25Core Viewpoint - Hims & Hers Health's stock has seen a significant decline following mixed signals from Bank of America, which raised the price target but maintained a sell rating [1] Group 1: Stock Performance and Analyst Ratings - Hims & Hers stock has increased over 600% in the past year, driven by its compounded semaglutide products that mimic the effects of major weight loss drugs [2] - Bank of America raised its price target on Hims & Hers shares to 21 while reiterating an "underperform" rating, indicating a cautious outlook [1][2] Group 2: Revenue and Growth Projections - Bank of America anticipates "upside" in Hims & Hers' Q4 revenue estimates and expects Q1 2025 guidance to exceed analyst expectations, suggesting potential earnings growth [3] - Despite optimistic projections from most Wall Street analysts, who foresee Hims & Hers revenue doubling by 2027, the earnings forecast remains low at 0.86, leading to a high valuation of over 77 times earnings [5] Group 3: Risks and Market Dynamics - Bank of America warns that by Q2 2025, GLP-1 sales could account for over 50% of Hims & Hers' total sales, creating a heavy reliance on a single product [4] - The risk arises from the expectation that major competitors like Novo Nordisk and Eli Lilly will eventually meet demand for GLP-1 products, potentially leading to a significant decline in Hims & Hers' sales [4]